Tex.
Tax Code Section 26.042
Calculation and Adoption of Certain Tax Rates in Disaster Area
(a)
Notwithstanding Sections 26.04 (Submission of Roll to Governing Body; No-new-revenue and Voter-approval Tax Rates) and 26.041 (Tax Rate of Unit Imposing Additional Sales and Use Tax), the governing body of a taxing unit other than a school district or a special taxing unit may direct the designated officer or employee to calculate the voter-approval tax rate of the taxing unit in the manner provided for a special taxing unit if any part of the taxing unit is located in an area declared a disaster area during the current tax year by the governor or by the president of the United States and at least one person is granted an exemption under Section 11.35 (Temporary Exemption for Qualified Property Damaged by Disaster) for property located in the taxing unit. The designated officer or employee shall continue calculating the voter-approval tax rate in the manner provided by this subsection until the earlier of:(1)
the first tax year in which the total taxable value of property taxable by the taxing unit as shown on the appraisal roll for the taxing unit submitted by the assessor for the taxing unit to the governing body exceeds the total taxable value of property taxable by the taxing unit on January 1 of the tax year in which the disaster occurred; or(2)
the third tax year after the tax year in which the disaster occurred.(b)
In the first tax year following the last tax year for which the designated officer or employee calculates a taxing unit’s voter-approval tax rate in the manner provided by Subsection (a), the taxing unit’s voter-approval tax rate is reduced by the taxing unit’s emergency revenue rate. For purposes of this subsection, a taxing unit’s emergency revenue rate means a rate expressed in dollars per $100 of taxable value calculated according to the following formula:(c)
For purposes of Subsection (b), “adjusted voter-approval tax rate” means the voter-approval tax rate a taxing unit would have calculated in the last year for which Subsection (a) applied to the taxing unit if in each tax year Subsection (a) applied to the taxing unit the taxing unit adopted a tax rate equal to the greater of:(1)
the tax rate actually adopted by the taxing unit for that tax year, if that tax rate was approved by the voters at an election held under Section 26.07 (Automatic Election to Approve Tax Rate of Taxing Unit Other than School District); or(2)
the taxing unit’s voter-approval tax rate for that tax year, calculated in the manner provided for a taxing unit other than a special taxing unit.(d)
When increased expenditure of money by a taxing unit other than a school district is necessary to respond to a disaster, including a tornado, hurricane, flood, wildfire, or other calamity, but not including a drought, epidemic, or pandemic, that has impacted the taxing unit and the governor has declared any part of the area in which the taxing unit is located as a disaster area, an election is not required under Section 26.07 (Automatic Election to Approve Tax Rate of Taxing Unit Other than School District) to approve the tax rate adopted by the governing body for the year following the year in which the disaster occurs.(e)
When increased expenditure of money by a school district is necessary to respond to a disaster, including a tornado, hurricane, flood, wildfire, or other calamity, but not including a drought, epidemic, or pandemic, that has impacted the school district and the governor has requested federal disaster assistance for the area in which the school district is located, an election is not required under Section 26.08 (Automatic Election to Approve Tax Rate of School District) to approve the tax rate adopted by the governing body of the school district for the year following the year in which the disaster occurs. A tax rate adopted under this subsection applies only in the year for which the rate is adopted.(f)
If a taxing unit adopts a tax rate under Subsection (d) or (e), the amount by which that rate exceeds the taxing unit’s voter-approval tax rate for that tax year may not be considered when calculating the taxing unit’s voter-approval tax rate for the tax year following the year in which the taxing unit adopts the rate.(g)
A taxing unit that in a tax year elects to calculate the taxing unit’s voter-approval tax rate under Subsection (a) or adopt a tax rate that exceeds the taxing unit’s voter-approval tax rate for that tax year without holding an election under Subsection (d) or (e) must specify the disaster declaration that provides the basis for authorizing the taxing unit to calculate or adopt a tax rate under the applicable subsection. A taxing unit that in a tax year specifies a disaster declaration as providing the basis for authorizing the taxing unit to calculate or adopt a tax rate under Subsection (a), (d), or (e) may not in a subsequent tax year specify the same disaster declaration as providing the basis for authorizing the taxing unit to calculate or adopt a tax rate under one of those subsections if in an intervening tax year the taxing unit specifies a different disaster declaration as the basis for authorizing the taxing unit to calculate or adopt a tax rate under one of those subsections.
Source:
Section 26.042 — Calculation and Adoption of Certain Tax Rates in Disaster Area, https://statutes.capitol.texas.gov/Docs/TX/htm/TX.26.htm#26.042 (accessed Apr. 20, 2024).
